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Alvarez & Marsal Taxand CEO Bob Lowe breaks down the findings of a CFO tax survey.
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We are pleased to be joined by Alvarez and Marseille tax and service CEO.
Bob blood thanks so much for joining us today to talk about this survey.
More than 300 chief financial officers from public and private companies way again.
On this survey and a little bit surprising may be that certain.
Lower rates is the thing most desired how much do you think this uncertainty over the tax -- right now is creating a bit of -- basis in corporate America right now and go with companies a little.
Maybe less willing to make investments or bring on -- employees right now.
Top personal thank you for having me here -- and I that I I was to be honest I was a bit surprised that C -- chosen uncertain murals certainly.
Over reduction in tax rates and we what we -- to make one decision between reduction in tax rates or uncertain.
And the the number one response was elimination on uncertainty as of this though the the tax reform that they would desire to the most.
Why I think it's there's two reasons one companies are forced to make long term business decisions every day.
Decisions that impact their businesses for five years ten years.
Routinely and to not know with the corporate tax system will be.
One year out or two years out is a this makes it difficult to make good decisions.
Secondly after over the audience audience is -- were mostly CFOs financial executives.
Their primary responsibility of delivering accurate financial statements which includes an accurate tax expense -- an -- attacks -- the right.
So complexities of the law.
-- -- and certainly.
And exposes them to the food to things they don't like the most unexpected earnings volatility or even worse a mistake which creates -- restatements in their financial statements.
Lower rates -- they feel would be make the US more competitive we know the US has the highest corporate rate of the developed world right now.
Sure the the rate that they chose was not -- for the -- -- did not choose the lowest rate that we offered in the survey.
The rate that they indicated would be the best rate for the US companies to be competitive globally was in the range of twenty to 25%.
The current rate is 35% in the U -- you know.
And the date they believed wanted to point 5% of what they need to be competitive.
That's no surprise why because most countries around the world many countries around the world have changed your rates to be competitive -- -- companies to their country and we're looking at a list.
Right now that shows the US far away -- higher prefer it particularly when you look at Germany at 15%.
Are you also -- which states are the most competitive and least competitive let's start with the least competitive states here -- if we can bring up I think we have a full screen here as well and and talk a little about -- may be no surprise we talk about a lot the taxes in California being number one of the least competitive there.
Sure no surprise the highest rate in the most complex -- the laws are those losers for the simple determined to be who is competitive when that would include California and new York New Jersey also analysts and the best here taxes no corporate tax rates -- -- not a huge surprise there.
But talk to us about Florida and Nevada as well.
But little low low tax rates and less complex systems and so certainly as -- indicated the early response.
Play the -- and then in choosing the state of all right Bob what takes a much.
